French flag carrier Air France is reportedly planning to cut 7,500 jobs from its sister company Air France Hop.
The move is to help the carrier adapt to the current situation after being affected by the Covid-19 crisis.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Air France, the level of activity last year is not expected to be seen before 2024.
A part of Franco-Dutch airline holding company Air France-KLM, the company said it lost €15m a day during the height of the Covid-19 pandemic crisis. The company’s revenues declined by 95%.
Of the total number, 6,560 or 16% of Air France jobs will be eliminated by the end of 2022 and Air France Hop will lay off 1,020, employees in the next three years.
Air France and its sister company currently have a total of 41,000 and 2,420 employees, respectively while the former expects more than 3,500 natural departures during this period.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe move follows after Air France-KLM and Air France secured €7bn in funding in April to maintain financial stability amid the pandemic.
The company said in a statement: “Air France and Air France Hop are working together with the unions to implement plans that give priority to voluntary departures, early retirement arrangements and professional and geographical mobility.”
It will present the restructuring plan later this month along with Air France-KLM Group’s plan.
Junior Economy Minister Agnes Pannier-Runacher told Sud Radio: “A successful labour reorganisation is one where there are no forced departures.”
